Selling pressure pushes Snowflake lower in today trading

Traders Union
All News
Financial News
Snowflake slides 4.18% to $165.83 today

Highlights

Snowflake posted fourth quarter revenue of approximately $1.3 billion but reported a net annual loss of about $1.3 billion and a basic EPS loss of $0.90.
The firm emphasized rapid adoption of its AI offerings, including Snowflake Intelligence and Cortex AI, while maintaining a $7.88 billion revenue backlog and strong 71.7% gross margins.
SNOW trades at $165.83, below all major moving averages with strong bearish momentum, and key support and resistance levels are $160.06 and $181.43, respectively.

Revenue growth and AI adoption fail to offset negative sentiment

Snowflake reported fourth quarter revenue of approximately $1.3 billion and a basic EPS loss of $0.90. The company recorded a net annual loss of about $1.3 billion, with a net loss of $309.6 million excluding special items for the year. Accelerated adoption of its AI platforms, including Snowflake Intelligence and Cortex AI, was highlighted alongside a revenue backlog of $7.88 billion and gross margins of 71.7%, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees clear evidence of sustained selling pressure in both price action and momentum indicators for Snowflake Inc. He notes that the stock’s inability to hold above short- and long-term moving averages signals weak confidence. Kharitonov highlights the company’s persistent net losses and lack of positive macro or fundamental signals, which undermine any recovery attempts. He warns of a low rebound probability given poor technicals and recent gap downs. "Until both earnings trajectory and momentum improve, I can't justify taking new bullish positions here," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, acknowledges the recent price drop but remains focused on Snowflake’s robust revenue backlog of $7.88 billion and improving AI platform adoption. He believes these fundamentals lay a foundation for future growth despite near-term volatility. Karapetjanc points to the company’s solid gross margins and sees multiple opportunities as the market levels out. "I view these pullbacks as healthy rebalancing — Snowflake's bullish structure remains intact and further upside is likely once momentum returns," affirms Karapetjanc.

Jainam Mehta, market strategist, notes the divergence between short-term oversold signals and daily overbought indications for SNOW. He sees the stock consolidating within the $160 — $180 band as sellers dominate intraday flows. Mehta suggests tactical traders watch for a potential breakout above $170, but cautions against chasing the move until confirmation. "A volatility squeeze could offer a sharp move in either direction — I’d wait for a decisive close before positioning," says Mehta.

Bearish momentum intensifies as indicators point to continued downside

Momentum signals on the daily chart remain weak, with both MACD (strong sell) and ADX confirming the predominance of bearish momentum. RSI (43.58) is in sell territory, and Stoch RSI plus CCI indicate recent overbought conditions on the daily timeframe but are oversold on shorter intervals, reflecting divergence; BBP also flags an overbought setup on D1, but intraday flows favor sellers. SNOW opened with a small gap down from $173.06 to $169.45 and has since lost 4.18% on the session, now trading near the lower end of today’s range ($166.46 — $171.52). Volatility is moderate to high, and the intraday tone remains pressured after the open, in line with weak momentum indicators.

Previously it was reported that Snowflake Inc. is trading near its 20-day moving average but below the 50- and 200-day averages, signaling ongoing medium- and long-term bearish pressure. The stock faces resistance at the Ichimoku Kijun level and finds support near the 5-day moving average, reflecting a challenging technical setup despite recent revenue momentum from AI-driven partnerships.

Source of Data: SNOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.